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Sometimes its hard to believe that we’re in the middle of a Global Financial Crisis, especially when you read articles like the one in the Herald Sun, here is an extract (http://www.news.com.au/heraldsun/story/0,21985,25703449-5013926,00.html):
HOME hunters locked in bidding frenzies are pushing the prices of some properties through the roof.
Four bidders went hammer and tongs for a house in King St, Richmond, at the weekend, pushing the sale to almost $100,000 above its asking price of $620,000.
Eventually it went for $718,000. The price for the imitation Edwardian was touted in the $550,000-plus range during the campaign.
Even more spectacular results were achieved across the suburbs with even bigger margins.
Staggering results and a record price for the suburb saw do-or-die bidders vying for a parcel of land in Brunswick, which sent it almost $1 million over its reserve.
Quoted at $1.6 million, the block sold on Saturday for $2.58 million. Edwardian "Illoura" in Kew, advertised in the $750,000 plus range, changed hands for $915,000.
The weekend clearance rate of 86 per cent kept the overall clearance figures above 80 per cent for the seventh week in a row.
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With affordability at its lowest level on record, first-home buyers are thinking outside the square.
The home-ownership dream rarely used to feature a sibling in your bathtub and a parent on your certificate of title. These days though, first-home buyers are prepared to be flexible.
Housing affordability fell to record lows in the March quarter this year according to the latest Housing Industry Association-Commonwealth Bank report. Mortgage payments accounting for 30.7 per cent of total first-home buyer income these days!
Generations X and Y are also settling down later meaning for many home ownership is a solo battle.
It’s not surprising then that increasing numbers of first-home buyers are teaming up with siblings, parents or friends in a bid to break into the property market.
“There’s been a noticeable trend towards family members buying property together, as property prices are still very high, particularly for first-home buyers,” says Aussie Home Loans boss John Symond.
The number of family members taking out mortgages together has jumped from about 1% of all loans originated by ‘Aussie’ to 5 per cent over the past two years! Mortgage Choice has reported a similar trend. A survey carried out by the company last year revealed more than 6 per cent of people who bought property within the past two years had done so with family or friends. And of those who intended to buy property within the next two years, over 8 per cent intended to do so with family or friends!
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INVESTORS own around two million homes in Australia and every year thousands claim deductions they’re not entitled to and fall foul of the Australian Taxation Office.
The result can be a kind warning or a significant fine and large interest bill.
The tax office says investors’ should be responsible in getting their tax returns right and they can’t blame their accountant or plead ignorance if they get it wrong.
One of the most common mistakes investors make is claiming items that should be depreciated over several years.
According to the ATO, initial repairs to fix damage, defects or deterioration that existed when a property was bought are capital expenses that should be claimed as capital-works deductions over either 25 or 40 years.
Capital improvements such as re-modelling a bathroom or adding a pergola should also be claimed as capital-works deductions.
Other mistakes can include:
Interest
Taxpayers sometimes use loans for investing and private purposes — for example, to buy or renovate a rental property or to buy a motor boat.
The interest expense on the private portion of the loan (the boat) is not deductible!
Legal expenses
Conveyancing expenses incurred when buying and selling a property are not deductible. These form part of the cost for capital-gains tax purposes.
Travel expenses
If you take a holiday and visit your investment property while you’re there, you cannot claim a deduction for the full trip.
The tax office says you may claim only those expenses directly related to the property inspection and a proportion of accommodation expenses.
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Property investors should start planning now and take advantage of the next upturn in the property cycle, according to quantity surveying firm Asset Economics.
“Property booms never last but neither do property busts.”
To take advantage of the next boom, investors need to make sure they’re buying for long-term capital growth but take in account the ripple effect.
As our next property cycle comes around, it‘ll be the most desirable and sought-after areas that start growing first, and these are generally the most affluent suburbs too.
From there, capital growth starts to ripple outwards!!
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551 Punt Road SOUTH YARRA
Renovated from the ground up with no expense spared, this stunning home has been re-stumped and rewired with new double glazing. It features a stunning gourmet kitchen opening on to a large family room at the rear overlooking a picturesque back garden and entertaining area, accommodation includes three huge double bedrooms plus study (master with ensuite) formal sitting room, all with 12 ft plus ornate Victorian ceilings!
There’s 4 open fire places perfect to fall asleep in front of with the impending winter, stunning new timber floors with brass inlay and ducted heating!
There’s off street parking for a number of cars including a car port, as well as a double storey
cottage / studio.
This beautiful home is a truly beautiful example of a timeless triple brick “Victorian” superbly decorated with feature gold leaf!
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FIRST-home buyers are flooding into the market thanks to falling interest rates and slumping home prices.
But investors are shunning cheaper homes because they fear prices could fall further.
Read the full article here: http://www.news.com.au/heraldsun/story/0,21985,25014496-5013926,00.html
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Despite everything, Australians do buy in Bali -attracted to the beauty, lifestyle and people.
The holidays are well and truly over. Surely, everyone will be back at work on Monday . . . if they’ve still got a job. With the financial situation so grim, many people will wish they could move to a tropical island to see out the rest of the year.
What about Bali? OK, so there’s been the Schapelle Corby and Bali Nine dramas, terrorist attacks, executions, threats of reprisals, security warnings, rapes and murders, even a rabies scare and a booze shortage recently but Australians do buy property there.
“There’s a whole heap of Australians,” says Charles, a Sydney caterer who bought land in Bali several years ago and intends to build a villa.
“I just fell in love with the island, the people, the scenery and the fact it offers such a relaxed lifestyle . . . and no one’s going to deny having cheap household help can swing the deal.”
This opportunity to live in the lap of luxury, complete with staff, at a relatively affordable price has transformed the Bali tourism market in the past decade - particularly around Seminyak, a haven for upmarket restaurants.
Some love it so much, they want to own a place in Bali for holidays, to rent out and eventually live in. Despite the 2002 and 2005 bombings, by last September, when Domain visited, agents said buyers were more concerned about movements in the dollar than terrorism.
Phone calls this week, though, revealed the financial crisis has had an impact and some luxury villas have had price drops of 30 per cent.
“We have a number of foreign owners who have lost money in the stockmarket and they need liquidity,” says Mike Pugh of Exotiq Real Estate in Seminyak.
Last year, when the Australian dollar was strong, nearly half his sales were to Australians.
“Especially when it went above 90 [cents to the US dollar] we had a mad rush of people coming to buy,” he says. (This week, it was 66 cents.)
Even now, some of the villas - especially with the price drops - look appealing. Particularly if you’re still employed or have a healthy redundancy cheque. Most of the foreign buyers in Bali are so rich they don’t need to borrow from a bank, which is fortunate since it’s impossible to get a loan either within Indonesia (unless they marry a local) or at home. There are also restrictions for foreigners buying freehold, though they can easily buy leasehold. Many keep quiet about their purchases for tax reasons.
“Bali is a cash market and there are no subprime mortgage meltdowns here and there are no bankruptcies or foreclosures, the only problems are that some of the developers have got their initial funding from foreign banks, which is proving difficult for some,” Pugh says.
Mira Sawitz of Jones Lang LaSalle says the financial crisis has had an impact.
“Inquiry is slowing down and clients who were hot prospects have decided to postpone their decision to buy anything,” she says.
Read the full article here: http://www.domain.com.au/Public/Article.aspx?id=1232818695940&index=NationalIndex&headline=Your%20own%20slice%20of%20paradise
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Dreams become a reality sooner thanks to Castran Gilbert’s hands on approach!
Why?
Castran Gilbert’s company Principals’, get involved with all the “behind the scenes” aspects of any new project!
From interior design, floor plans, to choosing which bank to finance the project, the Principals’ aim to take the pressure off the developer by offering educated advice ensuring developers make the most from their investment. This also sees the developer’s project gets to the marketing stage quicker!!
Testimonials
At Castran Gilbert we recognise the importance of pre-selling!
It instils confidence and allows you, the developer, to finance other projects sooner!
Here’s what a few of clients have to say.
Anton Wilson: This is my 3rd pre-sold project since dealing with Castran Gilbert. Their sales team pre-sold 220 apartments giving my company on this latest project more than $50 million in sales revenue …I’m sold on Castran Gilbert!!
Peter Arundel: I first dealt with Castran Gilbert in 1991 with them pre-selling a project of mine in South Yarra within just a couple of weeks! As a developer, this made me feel confident in the project seeing their ability to pre-sell!
Martin Tissot: My latest project has seen another 100% Castran Gilbert pre-sell! They gave me the confidence they could pre-sell then actually did it!! Their huge volume of pre-sales allowed me a construction start and also financed my next project …I have never had so much success since dealing with Castran Gilbert!!
Adding to these testimonials, recently one of our clients went to 1 of the 4 major banks to finance a project and on discovery that Castran Gilbert were involved, the bank proceeded to inform them Castran Gilbert is their preferred selling agent…the bank signed off immediately on the project!!
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Sydney will be reinvented as a high-density metropolis serviced by mass-transit subways under a transport blueprint being developed by senior state and federal government bureaucrats.
Powerful new legislation underpinning a proposed metro network costing $13 billion will enable transport and planning officials to reshape the inner suburbs of Sydney, paving the way for apartment towers as high as 15 storeys as well as large-scale retail and office blocks.
To justify the multibillion-dollar investment, tens of thousands more people would have to live and work within walking distance of the proposed Parramatta Road metro stations, according to planning officials behind the overhaul.
Heritage inner-west suburbs such as Glebe, Leichhardt, Rozelle and Camperdown are to be among the first to face radical changes should both the $8.1 billion West Metro underneath Parramatta Road and the $4.8 billion CBD Metro go ahead.
Read the full article here: http://www.domain.com.au/Public/Article.aspx?id=1231003979729&index=NationalIndex&headline=Get%20ready:%20high-rise%20suburbs%20coming
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VICTORIAN property values have plummeted about $40 billion in the past six months.
Melbourne’s median house price of $450,000 mid-2008 is now down to $427,500, according to estimates.
And house price expectations across Australia have sunk to an all-time low, a new report says.
Victoria’s $800 billion residential property market has dropped 5 per cent - or $40 billion - overall since July, according to BIS Shrapnel calculations prepared for the Herald Sun.
The trend has opened the door for potential borrowers desperate for cheaper housing.
Read the full article here:
http://www.news.com.au/heraldsun/story/0,21985,24881569-5013926,00.html